Sustainable Finance: The Rise and Rise of ESG

Sustainable Finance: The Rise and Rise of ESG

Governance then rapidly gained popularity within the financial services sector. Its focus sits rightly on those who make the decisions including the board of directors and the shareholders. Here executive compensation, board diversity, independence, ownership and shareholder transparency are ever more under the microscope. The better regulated the industry, the stronger its governance credentials and the rosier its future. ESG dialogue predominantly focused on Environmental initiatives initially, with green products and services being badged as such to tempt investors. In 2018 the Guernsey Financial Services Commission (the Commission) introduced the world’s first regulated green investment fund product, the Guernsey Green Fund, to increase investors’ access to green products. In December 2020 it became the world’s first regulator to introduce a green insurance capital regime. There is now a real move towards adopting progressive Social initiatives as well. Factors like human and workers’ rights, health and safety, community engagement and equal inclusion sit high on the financial services business agenda, not just for organisations themselves but for their investors and investments, clients and suppliers. This could lead to a fairly major change in direction of ESG policies, as the sector continues its rapid evolution.

Growth resulting from sustainable investing is encouraging the charge with more investors looking at ethical options, and with an acknowledgement that businesses could fail if they don’t adopt ESG policies now, there is a palpable sense of urgency to harness the momentum for good. The Covid pandemic further magnified the focus on ESG, with many people and businesses reassessing priorities in light of its acute and immediate human impact. Covid has influenced an emotional shift and driven an increased desire to change behaviours. ‘Building back better’ isn’t just about financial stability, but it carries the more important message of carving an environmentally and socially sustainable path for the future. This, combined with the digital revolution marching on a pace, and factors like an increase in remote working, means that the business landscape is undergoing seismic change.

The E, the S & the G ESG (the business consideration of environmental, social and governance issues) as a sector of its own, has grown exponentially in recent years. Most financial services businesses are putting ESG at the forefront of their board agendas, as consumers, investors and regulators all focus on it as a priority (and not financial performance alone). Failure to address these three concerns will not just impact the future of society and the planet, but for our purposes will threaten the global economy as well as the prospective prosperity of established businesses.

And rightly so; not only is an island like Guernsey at the sharp end of climate change and its impact on rising sea levels, but as an independent offshore jurisdiction, Guernsey is well-placed to provide targeted ESG products and services. Strong regulation and an established offshore finance reputation combined with such a profound awareness of the all-encompassing importance of our natural environment puts Guernsey financial services businesses in a strong position to give expert advice on sustainable finance structuring. ‘Green’ product offerings are afforded their own targeted approach by the Commission “to demonstrate its commitment to develop climate finance through regulatory tools and support the finance sector throughout the transition towards a low carbon economy”. To further confirm this commitment the regulator has positioned itself as an active participant in the UN backed Sustainable Insurance Forum and has been accepted into the Network for Greening the Financial System, a green forum for regulators. It has also taken steps to practice what it preaches: The Commission’s staff pension scheme has been allocated to an investment manager with a green approach, while some of its carbon emissions will be offset investment in a parcel of land which will be re-planted with saplings. SFW, which is run in association with the UN Finance Centres for Sustainability, has quickly become a fixture in the private wealth and sustainable finance space, bringing together over one thousand global policy makers, opinion formers and professionals to discuss private capital financing sustainability against the backdrop of COP26 and positioning Guernsey front and centre of the sustainability agenda.

The Commission and Guernsey Finance have both put the green approach at the core of their plans, with Sustainable Finance Week (SFW) showcasing the island’s commitment to ESG this week, confirming Guernsey as a leading force for good among International Finance Centres. ESG in Guernsey

The News Highlights

  • Sustainable Finance: The Rise and Rise of ESG
  • Check the latest News news updates and information about business, finance and more.
Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Crypto Shadow Banking explained and why 12% of earnings are common

South Africa’s Financial Oversight to Bring Cryptography Changes to Regulatory Oversight

Source finance.yahoo.com Sometimes, finding the right stock can be a chore, and sometimes, a pleasure. But whether it’s a breeze or a slog, some things ...
The trailer for Lost In Random premieres at Tribeca Games Spotlight

The trailer for Lost In Random premieres at Tribeca Games Spotlight

As far as I can tell, Lost in Random is about Even, a girl who befriends a living dice (the dice turns out to be pretty handy in combat) and sets out into a ...
Savegames from Star Wars Jedi: Fallen Order on PS4 are compatible with Star Wars Jedi: Fallen Order on PS5

Savegames from Star Wars Jedi: Fallen Order on PS4 are compatible with Star Wars Jedi: Fallen Order on PS5

However, Star Wars Jedi: Fallen Order – which released natively on the PS5 today – changes everything. The next-gen edition can read the PS4 save data stored ...
McLeod Doctors Honored with Teaching Awards

McLeod Doctors Honored with Teaching Awards

“On behalf of the USC School of Medicine, I can’t thank our faculty enough for what each of them does for our regional campus. I also have to thank the McLeod ...
OnePlus Nord CE officially announced with attracting design features

OnePlus Nord CE officially announced with attracting design features

We know it’s called the OnePlus Nord CE 5G, and that it’s coming to the UK and Europe. CE stands for ‘Core Edition’, with the aim to strip down the Nord ...
Inslee consolidates business and employee guidance documents for selected industries

Inslee consolidates business and employee guidance documents for selected industries

Media Contact  Read all business and employee guidance here. Public and constituent inquiries | 360.902.4111Press inquiries | 360.902.4136 Construction ...
Jay and Silent Bob’s Mall Brawl Review (PS4)

Jay and Silent Bob’s Mall Brawl Review (PS4)

We also questioned that if it made us feel so frustrated, were we even having fun? Yet, upon completing its final Chapter 9 in a hair pulling, straight ...
Nokia C20 Plus With long battery life along with Earbuds is Launched

Geekbench has revealed the main specifications for the Nokia XR20

According to the benchmark database, the Nokia XR20 runs Android 11 and has 4GB RAM onboard, but there could be other memory options as well that are yet to ...
Samsung’s New Galaxy, OnePlus’ Nord CE, and Razer’s Hammerhead Earbuds Update

Samsung’s New Galaxy, OnePlus’ Nord CE, and Razer’s Hammerhead Earbuds Update

Android Circuit is here to remind you of a few of the many things that have happened around Android in the last week (and you can find the weekly Apple news ...
Independence Police Raises Money for New Dog Show with Auto Show

Independence Police Raises Money for New Dog Show with Auto Show

“It’s for a good cause. Like I said, anything you buy or get from here it’s going towards the canine or the local businesses that came up to support us,” Cpt. ...
Show next
Compsmag - Latest News from tech, business and health
Logo